Tones Industries has the following patents on its December 31, 2016, balance sheet.
Useful Life at Date Acquired
Patent A$30,6003/1/1317 yearsPatent B$15,0007/1/1410 yearsPatent C$14,4009/1/154 years
The following events occurred during the year ended December 31, 2017.
1.Research and development costs of $245,700 were incurred during the year.2.Patent D was purchased on July 1 for $36,480. This patent has a useful life of 91/2 years.3.As a result of reduced demands for certain products protected by Patent B, a possible impairment of Patent B’s value may have occurred at December 31, 2017. The controller for Tones estimates the expected future cash flows from Patent B will be as follows.
Compute the total carrying amount of Tones’ patents on its December 31, 2016, balance sheet.